The Fiscal Policy Response to the Recession of 2008-2009 Was

question 47

Multiple Choice

The fiscal policy response to the recession of 2008-2009 was

• A) a substantial increase in the budget deficit just as Keynesian analysis would recommend.
• B) a balanced budget, just as Keynesian analysis would recommend.
• C) a substantial increase in the budget deficit, which was highly inconsistent with Keynesian analysis.
• D) a shift of the federal budget toward a large surplus, which  reflected the views of the critics of Keynesian economics.

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Definitions:

Eversion

The act of turning inside out or being turned inside out, typically used in medical contexts to describe a part of the body.

Abduction

The movement of a limb or other part away from the midline of the body or from another part.

Flexion

The action of bending or the condition of being bent, often in reference to a limb or joint in the body.

Extension

The act of increasing the length or duration of something, or a continuation of space or time.